January 7, 2025

 

Tray of eggs in South Korea at highest price of 2024 in December

 

 

In December last year, the consumer sale price of a tray of eggs in South Korea reached the highest level of the year.

 

With high pathogenic avian influenza (AI) spreading ahead of the Lunar New Year holiday, there is growing concern among consumers as the possibility of egg prices exceeding ₩7,000 (US$5.38) is raised.

 

According to the Livestock Products Quality Assessment Service, the average consumer sale price of a tray of eggs (30 eggs) in December was recorded at ₩6,949 won (US$5.34). This is 7.8% higher than the same month in 2023 (₩6,444 or approximately US$4.96), and was the highest on a monthly basis in 2024.

 

The main reasons for the price increase are cited as the spread of high pathogenic AI, a sharp rise in feed prices, and decreased productivity of laying hens due to extreme heat in the summer.

 

High pathogenic AI first occurred in a duck farm in Yecheon, North Gyeongsang, last October, and spread nationwide, significantly affecting egg production.

 

According to the Ministry of Agriculture, Food, and Rural Affairs, out of the 19 confirmed cases of high pathogenic AI, eight were confirmed in laying hen farms. Up to now, approximately 999,000 laying hens have been culled. This accounts for 1.23% of the total laying hen population of 81.2 million.

 

AI is spreading nationwide in South Korea and is concentrated in major laying hen dense areas such as Gyeonggi, North Chungcheong, South Chungcheong, and Sejong, putting farms and quarantine authorities on alert.

 

The Ministry of Agriculture, Food, and Rural Affairs is reinforcing quarantine inspections on laying hen farms in 11 cities and counties until January 10, and is conducting a "nationwide intensive disinfection week" until January 14, with intensive disinfection conducted twice a day around migratory bird spots and poultry farms.

 

Choi Jeong-rok, head of the Quarantine Policy Bureau at the Ministry of Agriculture, Food, and Rural Affairs, said: "As many of the AI-affected farms are located near migratory bird sites, we ask each local government and livestock farm to make thorough use of available disinfection resources for quarantine."

 

The rise in production costs, including feed prices, is also impacting the increase in egg prices. The price of mixed feed for poultry, which was ₩428 (US$0.33) per kilogramme  in 2020, reached an average of ₩578 (US$0.44) from January to November last year.

 

Additionally, according to the Korea Rural Economic Institute, egg sales amount in major supermarkets in the third quarter last year was ₩84.1 billion (US$64.7 million), an 8.6% increase from the same period in the previous year. During the same period, the sales volume increased by 6%, surpassing the increase in sales price (2.5%). This is attributed to the rising prices of livestock products such as beef and pork, leading to increased consumer demand for relatively cheaper eggs.

 

The Korea Rural Economic Institute predicted that the number of laying hens in March this year will increase by 4% compared to the same period in the previous year. With the subsequent increase in production, the price of eggs in the production area after the holiday is expected to fall by about 3% compared to the previous year.

 

Ahead of the Lunar New Year holiday, the government plans to implement a discount support policy to stabilise egg prices.

 

A representative from the Ministry of Agriculture, Food, and Rural Affairs said: "We plan to issue agricultural product discount coupons ahead of the Lunar New Year holiday when egg demand increases, and plan to continue additional discount support using funds after the holiday."

 

- Chosun Biz